Maize price fluctuating as Busia border trade resumes. 

November 15, 2017

Grain trading at Uganda/Kenya border market resumed with the return of cross border traders from neighboring Kenya. About 500Mt of maize crossed on a daily basis to Kenya. Kenya still had some grain at its disposal therefore traders on the Ugandan side had to lower the maize offer price at Busia for the Kenyans to buy. The price was forced to decline to Ksh.24/kg and later to Ksh.23/kg. Fair quality maize was bought at Ksh.22.5/kg while the least acceptable quality cost Ksh.21.5/kg. The market has returned to its vibrate activity for the past fortnight. Maize was delivered from a number of places in the country side.

It is expected that the general price level in other markets will continue fluctuating for some time.

In Kampala’s grain market the price continued to fluctuate lower as more supply was delivered from different production locations. Apparently the demand for maize in Kenya was reported on the raise and several traders delivered maize to Busia. This situation had a direct impact on the Kampala’s price and no sooner had the Kampala price risen, than it fell to Ugx.650/kg due to oversupply.

Plenty of beans were recorded crossing to Kenya. Yellow beans were preferred at Ksh.63/kg while Nambale/K132 and Red beans were bought at Ksh.53/kg. Mixed beans cost Ksh.53/kg. It was estimated that between 800-1500Mt of assorted beans variety were bought on a daily basis

It is speculated that the maize market price will drop further due to an increased production which was as a result of grain price hike last year to Ugx.1000/kg at farmgate. A bumper harvest is expected in areas such as Masindi, Hoima, Mubende, Kiboga, Kyankwanzi, Wakiso, Kibaale, and the northern region where above normal rainfall was registered in the second season 2017. A number of traders bought the first season crop for resale in anticipation for higher margins. They are stuck with their grain which they expected to sell at the peck of the season in Sept-Oct only to register low price leading to losses.

The off lorry price in Kampala is expected to drop to Ugx.500-600/kg at the climax of the 2nd harvest season around January 2018. It is also forecasted that the 2nd seasonal harvest 2018 will most likely be inadequate because several farmers will fall out of production due to losses but season A will be subsided by the ongoing harvest.

Newly harvested maize was received from Bunyoli-Tororo. Some traders were mixing newly harvested grain with the old stock in order to increase their margin. Some areas in Busoga have also announced their harvest season on.

Beans prices have been stable throughout and big volumes have been consumed and sold to Kenya informally especially via Busia border market.

Farmgain

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